PricewaterhouseCoopers LLP

Virginia State Tourism Plan Project Overview October 2012 DRAFT

PricewaterhouseCoopers LLP

Virginia Tourism Strategy

Table of Contents - Project Overview

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Introduction………………………………………………………………………………………………....................…………………........................................ 1 Where Are You Today?..................……………………………………………………….........………………….………………......................................... 3 Where Do You Want To Be?............................ ……………………………………..……………………………………................................................ 14 How Do You Get There?............................ ……………………………………..……………………………………...................................................... 16

Introduction PricewaterhouseCoopers LLP ("PwC") was engaged by the Virginia Tourism Corporation ("VTC") to develop a statewide tourism plan that will guide the development of Virginia's tourism industry and serve as a blueprint for communities to develop products that will provide a competitive edge while also preserving the authenticity of its regions and the Commonwealth. The plan enables communities to build upon Virginia's diverse tourism assets and success as a destination while preparing it to compete in the global economy. Ultimately, the plan is designed to increase economic development through tourism. This plan identifies a vision for the Commonwealth's tourism industry and establishes a set of desired outcomes, objectives, and strategies for both the public and private sectors to achieve this vision. This direction for tourism identifies the key lures or areas of focus for tourism products on statewide and regional basis to enhance competitiveness. It also sets a framework for the tourism infrastructure, partnerships, promotions, and policies needed to support tourism growth.

State Tourism Plan Features:  Five-year blueprint for tourism direction in the Commonwealth with a regional focus  Direction that will provide competitive edge and increase economic development through tourism  Built upon the vision and input of Virginia's tourism industry stakeholders  Tourism strategy, not a marketing plan with advertising and slogans

Why Virginia Needs the State Tourism Plan?     

Virginia is highly diverse in its tourism experiences, yet focus is needed to enable growth. Virginia is committed to tourism; and future efforts to grow tourism need to be strategically planned in a cohesive manner. Virginia needs to build on its tourism asset base and its successes, yet continue to be innovative and competitive. Global competition for tourists continues to increase; and a plan is needed to ensure Virginia remains competitive. Virginia has the opportunity through this plan to unite as a state and chart its path towards being a world-class place to visit and live.

What is the State Tourism Plan?  This state tourism plan is a blueprint that identifies areas of development and growth for the tourism industry.  The blueprint is an overall plan for the state that will also provide focus to Virginia’s nine regional tourism areas.  The plan looks at where the tourism industry needs to go over the next five years to provide a competitive edge and increase economic development through tourism.  The plan is industry-driven, built on the vision and input gathered from more than 1,300 of Virginia’s tourism stakeholders.

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Methodology PwC developed and implemented a customized approach to develop a statewide plan with a regional focus, built on input from a broad group of tourism stakeholders. The plan process focused on studying three critical areas: 1) Where are you today? 2) Where do you want to be? 3) How do you get there? Within these three areas, analyses of the industry and market were conducted along with a visioning process where stakeholder input was gathered to ultimately prepare the tourism strategic plan.

Where are you today?

Where do you want to be?

How do you get there?

Research was a critical step in developing the plan. PwC undertook an extensive research effort involving two key areas: the first involved primary research through personal visitor experience and reaching out to tourism stakeholders in Virginia to understand the current state of tourism in Virginia, including regional lures, challenges, and desired vision for the next five years; and the second involved an analysis of the tourism industry on a global, national, and state level basis, including trending visitor volume, spending, tourism funding, traveler preferences, competitive comparisons, and tourism assets inventory. These research and analysis efforts were conducted in parallel to each other, whereby PwC analyzed the results of each effort to develop the basis for the tourism development plan. PwC gathered input from industry stakeholders through a variety of methods, Stakeholder Input: including an on-line survey, group workshops, and individual discussions, which covered the diversity of the industry from each region. Stakeholders included  Input from more than 1,300 Virginians representatives from VTC, state agencies (Department of Conservation and  Workshops - 180 participants in 10 sessions Recreation, Department of Transportation, Department of Game and Inland  Individual Discussions - 140 Fisheries, Virginia Economic Development Partnership, and others),  Survey – More than 1,000 completed responses representatives of the State General Assembly, destination marketing organizations (DMOs), tourism associations, regional/local government leaders, tourism attraction management (wineries, theme parks, parks, agri-tourism, etc.), hoteliers, meeting facilities, arts & cultural organizations, national parks, developers, airport & transportation entities, corporations, colleges/universities, tour companies, event organizers, sports organizations, sports venues, and others. Stakeholder input and market and industry analysis established a comprehensive view of Virginia's diverse tourism industry, allowing PwC to gain an understanding of the tourism market, socio-cultural character, and its key issues related to tourism products, infrastructure, partnerships, promotions, and policies of the Commonwealth and its regions. These elements culminated into the tourism development plan for the Commonwealth.

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Where Are You Today? A situational analysis of Virginia's tourism industry is presented summarizing its size, growth, visitor profile, and key strengths and challenges.

Tourism Economy

Tourism Industry Highlights:    

Economic impact of $20.4 billion in 2011 Growth of 8% over 2010 Exceeding pre-recession spending levels Spending of $390 million from international visitors, increase of 10% over 2010  Supports 207,000 jobs  Fifth largest non-farm industry  Contributes $1.3 billion to state and local tax revenue

Virginia's rich beauty and diverse landscape from mountain to beaches, combined with its deep-rooted history and a variety of culinary, cultural, and business opportunities has enabled the Commonwealth to grow its tourism industry into an economic driver valued at $20.4 billion from domestic expenditures in 2011. Virginia's tourism industry continues to recover from the economic recession with spending in 2011 exceeding pre-recession levels. Spending increased eight percent over 2010. In addition, visitor expenditures from international travelers totaled nearly $390 million in 2011. This represents an increase of 10 percent over 2010. In 2011, the tourism industry supported 207,000 jobs and contributed $1.3 billion to state and local taxes. Virginia’s tourism industry ranked fifth for non-farm industry by employment in 2011. Virginia's tourism industry is supported by a relatively strong economy and generally high-quality of life, although some areas of the state continue to be economically challenged. Virginia is the 12th most populous state with a population of nearly 8.1 million. Virginia has achieved an unemployment rate more than two percentage points below the national average (estimated at 5.9 percent). The Commonwealth is home to 25 Fortune 500 companies, ranking sixth of all states in the U.S. With proximity to Washington D.C., government and government-related business is a major economic driver. With low business taxes, moderate corporate income taxes, low price of workers' compensation and unemployment insurance, a highly educated workforce, and major national and international gateway connections, Virginia consistently ranks as one of America's most business-friendly states. With a strong structure for business, Virginia is well positioned to support the growth of tourism.

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Virginia Tourism Expenditures (millions) $21,000 $20,500 $20,000 $19,500

$19,000 $18,500

Tourism Industry Highlights:

$18,000 $17,500 $17,000 $16,500 $16,000

 Economic impact of $20.4 billion in 2011  Growth of X% since 2007, despite economic downturn  Supports 207,000 jobs 2007

2008

2009

2010

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2011

Where are you today - Tourism Geography Virginia benefits from its strategic location in the southern part of the Mid-Atlantic States. Washington D.C. at the state's Northern border is a significant advantage for the state from a tourism and economic development perspective. Set within the Appalachian Mountains at the western edge, it borders West Virginia and Kentucky, while Tennessee and North Carolina sit south of the state, and the Chesapeake Bay and Atlantic Ocean serve as the state's eastern borders. The following map highlights Virginia's nine tourism regions, which include the Blue Ridge Highlands, Central Virginia, Chesapeake Bay, Eastern Shore, Hampton Roads, Heart of Appalachia, Northern Virginia, Shenandoah Valley, and Southern

Northern Shenandoah Valley Central

Heart of Appalachia

Blue Ridge Highlands

Southern

Chesapeake Eastern Shore Bay

Hampton Roads

Virginia. The map also highlights the key interstate and state road corridors throughout the state. As a state overall, Virginia is accessible through eight commercial airports, 22 Amtrak stations, and a portion of six major interstates (64, 66, 77, 81, 85, and 95). Dulles International in Chantilly is advantageous as the primary international airport serving D.C., and the upcoming extension of the Metro to Dulles will further enhance convenience and connectivity. However, road congestion is cited as a challenge for visitors and residents, particularly in Northern Virginia and Hampton Roads regions. Traffic congestion impacts visitation and diminishes the potential for cross-visitation among destinations. This transportation challenge is a potential limiting factor for future tourism growth. Signage is also recognized as a challenge among stakeholders in working with the Virginia Department of Transportation to obtain signage.

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Where are you today - Virginia Visitors With Virginia's geographic location, it is natural for the top domestic markets to be visitors from North Carolina and Maryland. Other top markets include New York, Pennsylvania, and Florida. In addition, Virginians travel frequently in the state accounting for the largest share of travelers. International visitors are also prevalent in Virginia. In 2011, spending by overseas visitors reached nearly $400 million, up 21% over 2010. Canadian traveler expenditure reached nearly $150 million, an 11.3 percent increase over 2010. While visiting with friends and family are the most frequently cited activity by Virginia visitors, other top activities included shopping, rural sightseeing, visiting historic sites/churches, fine dining, visiting museums, visiting state/national parks, urban sightseeing, and going to the beach. In terms of the characteristics of travelers in Virginia, 79 percent are between the ages of 25 and 64, and 65 percent of travelers have household income exceeding $50,000. Couples represented the largest segment of travelers at 41 percent of Virginia visitors, and over two-thirds of visitors stayed overnight four or fewer days. The most visited months during the year are July and August. Seasonality remains a challenge in the state, particularly in certain areas of the state.

General Activities / Attractions Visiting relatives Visiting friends Shopping Rural sightseeing Historic sites/churches Fine dining Museums State/National Park Urban sightseeing Beach

30% 16% 15% 13% 12% 11% 10% 9% 9% 8%

Origin Virginia North Carolina Maryland New York Pennsylvania Florida New Jersey Ohio California Georgia

32% 10% 6% 6% 5% 5% 3% 3% 3% 3%

Month of Travel July August September October November December January February March April May June

12% 11% 7% 9% 7% 8% 5% 6% 9% 10% 9% 9%

Source: TNS Visitor Profile

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Where are you today - Tourism Products Diversity - One of Virginia's strengths as a destination is its diversity of tourism experiences. Whereas many other states are recognized by a single leading "lure" or personality (e.g., Florida as a beach destination or Colorado as a ski destination), Virginia's geographic diversity lends itself to a wide variety of visitor experiences year-round from the Eastern Shore's unspoiled beaches and shoreline to the Blue Ridge Mountains, offering outdoor mountain recreation and scenery. History & Heritage - Set within the diverse geographic landscape, Virginia's history and heritage is the outstanding tourism element in the state. The unique colonial and Civil War history as well as presidential, Appalachian, music, frontier, African American, Native American, civil rights, military, maritime, coal, and tobacco history is shown through sites, museums, attractions, towns, architecture, and nature. In fact, there are more than 2,800 registered historic places, 100 Civil War battlefields, 160 historic homes and plantations, 215 historical museums, history-themed trails, and countless historical events and festivals for visitors to experience Virginia's heritage. Virginia is home to a number of nationally recognized assets, including Colonial Williamsburg, Mount Vernon, Jamestown, Monticello, and Arlington National Cemetery, amongst others. However, a continual challenge for historic destinations across the globe is ensuring appealing and relevant visitor experiences.

Tourism Lures & Strengths:  Tourism asset diversity - mountains, history, beaches, arts, culture, wine, and more  Scenic beauty and outdoor recreation - relaxing getaways and opportunity for outdoor adventure, including hiking, biking, paddling, fishing, boating climbing, wildlife, equestrian, caverns, and others  History - Significant colonial and Civil War history as well as civil rights, presidential, Appalachian, music, frontier, African American, Native American, military, maritime, coal, tobacco, etc.  Nationally-recognized assets  Over 200 wineries and 25 wine trails  Adjacent to Washington D.C.  Corporate base  8 commercial airports, including Dulles  Small towns and main streets  Overall economic strength of state and businessfriendly environment  Strong university presence  Strong state brand recognition and state name

Nature & Outdoor Recreation - Among the history, Virginia's natural beauty and opportunity for outdoor recreation are prevalent throughout the state. There are 35 state parks and 48 national parks and forests, including the Shenandoah Valley National Park, the George Washington & Jefferson National Forests, and the Breaks Interstate Park, often referred to as the "Grand Canyon of the South,” just to name a few. Virginia's coastal areas, beaches, and numerous lakes and rivers offer opportunities for water recreation. There are numerous trails and water trails, including the longest section of the Appalachian Trail, the Virginia Birding and Wildlife Trail, which blankets the state, Wilderness Road Trail, Virginia Creeper Trail, Bike 76 Route Trail, Captain John Smith Water Trail, and the Upper James Water Trail, among others. In addition to a scenic environment for relaxing getaways, Virginia offers outdoor recreation for hiking, biking, rafting, paddling, climbing, horseback riding, hunting, fishing, boating, and other outdoor activities. There are also 14 caverns and other natural formations, such as Luray Caverns and Natural Bridge, and five national scenic byways, including Skyline Drive, the Blue Ridge Parkway, and Colonial Parkway, that also provide a unique opportunity for visitors to experience the natural scenery, beauty, and fall foliage.

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Arts & Music - Virginia also possesses a growing creative economy built on musical and artistic roots and combined with modern culture. From the mountain, folk, and bluegrass music to the world class art museums, galleries, and theatres, there are many opportunities to experience the cultural arts. Additionally, the 25 designated Main Street communities and other towns and cities throughout rural and urban areas, offer genuine downtown charm and unique shops, galleries, restaurants, events, and festivals that help define the artistic culture present throughout the Commonwealth.

Key Challenges:  Challenge to keep history appealing and relevant  Traffic congestion and its potential limitation for future growth  Limited major visitor anchors statewide  Lack of connectivity among themes/attractions/destinations in some locations  Seasonality, particularly in some areas of the state  Some economically challenged areas of the state  Limited accommodations in some areas of the state  Strong brand, but some confusion of meaning  Uneven levels of tourism maturity across state

Culinary - The Virginia climate and landscape provides an ideal environment for the agriculture industry. Virginia has emerged as a significant wine destination, ranked as one of the top ten wine destinations worldwide in 2012 by Wine Enthusiast Magazine. More than 200 wineries and 25 wine trails provide an opportunity to experience the culinary industry first hand. Similarly, the breweries and distilleries are also growing in the state with more than 50, offering an opportunity for tourism to grow in this area as well. The more than 220 farmer markets and 350 agri-tourism attractions further enhance the farm-to-table movement that has grown in popularity. These, along with a variety of dining experiences, are offered in restaurants throughout the commonwealth. Sports - Virginia benefits from numerous colleges and universities throughout the state, including those such as Virginia Tech, University of Virginia, Old Dominion, and Virginia Commonwealth University that provide opportunities for sports fans. In addition, minor league teams, including the Norfolk Tides and Danville Braves offer additional spectator sport opportunities. With four Sprint Cup NASCAR races at Martinsville Speedway and Richmond International Raceway each year, an additional two races at the Bristol Motor Speedway in nearby Bristol, Tennessee, and countless other races throughout the Commonwealth, motorsports also adds to Virginia's sports landscape. In addition, Virginia International Raceway (VIR) hosts events such as the Grand-Am Rolex Sports Car Series and the American Le Mans Series. Meetings - The approximately 1,500 hotels with more than 150,000 rooms, in addition to the timeshares, cabins, cottages, B&Bs, and inns, provide a sizable lodging supply, although certain areas of the state may be underserved in terms of accommodation supply. Furthermore, with nearly two million square feet of meeting space in convention and conference venues, and another 1.2 million square feet of hotel meeting space, Virginia has group infrastructure to attract meetings and help support the corporate base. Within a highly competitive meetings market and a slowly recovering economy, there is market saturation nationally, but opportunities may exist for communities in Virginia to gain greater market share and serve local event needs.

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Competitive Considerations - While Virginia is highly diverse and its destinations are able to offer a variety of experiences, the diversity may somewhat hinder defining the identity of the state. In other words, "something for everyone" may dilute message focus. That said, Virginia's image as a travel destination is strongly tied to history, which may overshadow other attractive tourism products such as outdoor recreation, wine, music, etc. Virginia has a number of nationallyrecognized unique attractions, sites, and destinations, yet many of the state's assets and cities/towns may lack awareness, including differentiation from Washington D.C. in Northern Virginia. In addition, although the “Virginia is for Lovers” brand tagline is well-recognized, some confusion among consumers (family friendly vs romance) remains related to messaging.

Competitive Considerations:  Virginia excels in nationally unique and recognized historical assets  Wine is strong differentiator among competition which can be leveraged for other visitor themes  Strong business base and proximity to Washington, D.C.  Diversity can be a challenge for defined identity  Strength of history may overshadow other stand out elements of the state  Differentiation of some assets, including coastal and mountain experiences, offered in other states  Key visitor origin/target markets are also significant competition  Lack of recognition of some assets and towns, including differentiation from Washington D.C.

Virginia's outdoor elements serve as strengths, but Virginia is somewhat challenged in differentiating its experiences for nature and outdoor recreation from neighboring states with similar offerings, some of which may be well-known, competitively marketed, and offered in a concentrated area. This includes other coastal and mountain destinations. Similarly, experiences related to Appalachian culture, motorsports, arts, music, wine, and history are also offered by competitive states. However, Virginia's concentration and recognition of wine experiences as well as its distinctive national history are strong differentiators among its competitors. With various levels of industry maturity, major tourism anchors throughout the state are also a challenge, and many assets are spread among towns/cities throughout the Commonwealth rather than in concentrated areas. As such, tourism attractions and destination connectivity are important, but they may be limited in some areas. Furthermore, Virginia offers tremendous opportunities for history-related experiences as well as the scenic beauty; however, because Virginia is known for these elements, these experiences may be perceived as more passive and not necessarily exciting to potential visitors. For example, cities such as Charleston, SC, which is well known for its history, has also been recognized as one of America's Great Adventure Towns by National Geographic offering eco-tours, surfing, kayaking, horseback riding, and hiking. West Virginia and has become well-known for its whitewater rafting, and has expanded these experiences with other outdoor adventure elements such as ziplines, ropes courses, and other activities.

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Where are you today - Tourism Investment State Funding - Given its substantial economic impact, Virginia has recognized the importance of tourism and has made investments in recent years to support the industry. Governor McDonnell appropriated significant additional investment in tourism and film marketing in 2010 with the goal of doubling the VTC's marketing budget by 2013. The VTC's overall budget appropriation for fiscal year 2013 (including nongeneral funds) is approximately $21.2 million. Despite budget increases, tourism marketing funding at the state level needs to be appropriated every year and is not necessarily tied to a dedicated funding source. As such, tourism at the state level, like other departments, is subject to change and political influence.

$25 $20 $15 $10 $5

$0 The Governor signed three bills in 2011, which are intended to help VTC Budget (millions) FY2009 FY2010 FY2011 FY2012 FY2013 increase tourism and attract new business to the state, including the Tourism Development Financing Program, support for the commercial space port at Wallops Island, and license tax relief for new businesses. In addition, the Governor signed two pieces of legislation to support Virginia craft brewers in 2012. Senate Bill 604 allows retail sales of beer and sampling on the premises of Virginia breweries, allowing brewers to have tasting rooms, similar to wineries. House Bill 359 allows manufacturers to lease space in their brewhouses to smaller-scale brewers, which is intended to reduce some of the significant start-up costs and ultimately allow small-scale breweries to grow. Product Development - In order to spark tourism development, the Tourism Development Financing Program was created to provide gap financing for localities and developers needing funds for 20 percent or less of the overall development costs. It specifically enables localities that establish and adopt a tourism zone and implement a tourism development plan to work with an economic development authority or political subdivision to enter into a performance agreement which must demonstrate that 80 percent of the financing for the development is in place. The debt service for the gap, or the remaining 20 percent, is financed by a combination of the city, state, and developer. The first project under the program was announced in June 2012.

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Investment Key Points:  Governor's commitment to grow the tourism industry  State tourism and film funding of $21.2 million for fiscal 2013  Tourism Marketing Leverage Funding of $1.4 leveraged to $6 million in the marketplace in 2011  Tourism Development Financing is the newest assistance program  Local funding limitations and limited dedicated staff  Desire for greater out-of-state marketing investment

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Research - Virginia has invested in tourism research, which serves as a critical cornerstone for tourism initiatives and provides communities with important information about the visitors. The VTC develops visitor profile data showing what type of travelers are visiting Virginia, where they are coming from, where they are staying, and what activities they are doing by season, region, and visitor interest. Attitudinal studies also illustrate traveler perceptions and interests, while performance trends are available regarding international visitation, hotels, visitor spending and economic impacts, and others. Communities also continue to invest in research specific to their destinations to remain competitive. Research is an area of on-going importance for Virginia's tourism industry. Marketing - Tourism promotion efforts at the state level focus on domestic and international markets. States include Virginia, Maryland, North Carolina, Pennsylvania, New York, South Carolina, and Ohio. A challenge for domestic marketing is that primary origin markets also serve as key competitors for visitors. In other words, some of Virginia's visitor origin markets offer similar visitor experiences, which may create an additional challenge in attraction of visitors from these markets. Primary international markets include Canada, UK, and Germany. The secondary international markets include Belgium, the Netherlands, France, and Latin America, including Mexico and Brazil. China and South Korea are also emerging international markets. International marketing is conducted in conjunction with Capital Region USA (CRUSA), Travel South, and the Southeast Tourism Society. Tourism stakeholders have expressed the desire for additional out-of-state marketing and international marketing. Survey results of tourism stakeholders, including destination marketing organizations and attractions, also show a large proportion of marketing efforts (approximately 41 percent for DMOs and 66 percent for attractions) are conducted on an in-state basis. At the local level, funding for tourism marketing is a challenge in many towns across the state, which may have limited funds for advertising as well as operations. In numerous destinations, tourism marketing is often a function of a department of economic development and/or the Chamber of Commerce, and may not have full-time staff dedicated to tourism development and promotion. These funding limitations have contributed to a lack of tourism focus and industry maturity in certain areas of the state. Tourism funding at a local level is recognized as a challenge for some destinations where tourism tax revenue is used for other projects unrelated to tourism as a lenient interpretation of Virginia's tax code. Others have cited the Virginia's Dillon Rule, which requires legislative approval of increases to county taxes, as a hindrance in the ability to raise additional funds. Tourism marketing funds are also available through the Marketing Leverage Program, where a minimum of three entities partner to apply for up to $50,000 in matching funds to invest in a marketing program intended to increase visitor spending. In 2011, $1.4 million in grant funding was leveraged into approximately $6 million in the marketplace through this program. Additional marketing funding programs include the American Civil War Sesquicentennial Leverage Program and the Virginia Tourism and the Arts Grant Program.

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Virginia has been forward-thinking in terms of tourism marketing. Virginia was the first state to launch a statewide tourism website (in 1995); and it has adopted social media and technology such as Facebook, Twitter, blogs, and the Virginia is for Lovers iPhone app to promote tourism. The VTC was recently awarded the Mercury Award for the Best State Travel Website by the National Council of State Tourism Directors. After receiving an artistic, structural, and functional redesign in 2011, the site was visited by more than 6.3 million unique visitors. Education - Virginia has also invested in training and education for entrepreneurs, front-line employees, communities, and tourism professionals. VTC's Partnership Marketing offers tourism planning, marketing, and development assistance for communities and businesses, customer service training, and support for numerous programs for entrepreneurs, agri-tourism business, and tourism businesses. The Virginia Hospitality & Travel Association's supports educational opportunities for students as well as food and drink service programs. The Virginia Association of Convention and Visitors Bureaus offers professional development programming for DMO staff. Some local destination marketing organizations are also involved in tourism training programs. Stakeholders continue to recognize the need for additional training to ensure a competent workforce. For example, while Virginia is generally known for friendly residents in tradition with "Southern hospitality," stakeholders have recognized the need for additional tourism customer service training to ensure travelers feel welcome and frontline employees are able to answer questions regarding local tourism assets, and informally promote destinations.

Where are you today -Virginia's Tourism Industry

Industry Key Points

 Tourism industry is widespread and intertwined The Virginia tourism experience is highly complex and is supported by public- and  New tourism organizations forming private-sector stakeholders including the VTC, local and regional destination  Limited tourism stakeholder cooperation in some marketing organizations (DMOs), suppliers who provide goods or services to visitors, areas of the state transportation carriers, travel agents, government organizations, non-profit  Limitations in business, government, and resident organizations, and countless secondary businesses that indirectly support the recognition of tourism value tourism businesses. Industry stakeholders are inherently connected as illustrated in  Limited cohesive focus on tourism economic the graphic on the following page, showing a sample of the groups and experiences development relevant to Virginia including history, music, arts, wine, outdoor recreation, accommodation, transportation and others. While complex and intertwined, the industry is driven by its tourism assets that visitors want to experience. These assets are supported by the promotions which attract people to destinations, the transportation and accommodation infrastructure which allow visitors to travel to and stay in destinations, and the partnerships and policies which enable preservation, promotion, and development. Local tourism departments and destination marketing organizations continue to develop and grow throughout the state, including city tourism departments as well as regional efforts such as the Coastal Virginia Tourism Alliance and the emerging Southwest Virginia Region. Tourism collaboration, cooperation, and coordination are generally cited as areas for improvement by stakeholders where a "silo effect" occurs to some

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extent at a local or state level among organizations directly and indirectly involved in tourism. In addition, normal competition among attractions and destinations is often another limiting factor for industry cooperation. While most residents have an understanding of the benefit of tourism in terms of quality of life, stakeholders believe there remains a general lack of understanding and acceptance of tourism as an economic development tool among local government leaders, businesses, and residents. The combination of limitations in tourism support, funding, staffing, and cooperation have resulted in a lack of cohesive focus on tourism economic development. The products, supporting infrastructure, partnerships, policies, and promotions needed to enable an environment for tourism economic development and growth in the next five years are addressed in this plan.

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Vacation Rentals

Hiking & Camping Caverns

Golf Scenic Byways

Theme Parks

Fishing & Hunting

Film Production

Mountains

Gaming / Race Tracks

Boating / Sailing

Nature / Outdoor

Ski

Lodging

Hotels / Motels

Concerts / Music Events & Festivals

Beaches / Waterfront

State/Nat’l Parks

Campgrounds

Recreational Vehicle Parks

Spa

Entertainment

Wineries/ Vineyards

Recreation Team/ Individual Sports

Friends & Family Housing

Spectator Sports

Bed & Breakfasts

Specialty Foods Farmers Markets

Culinary Air

Motorcycle

Restaurants

The Virginia Tourism Experience

Rail Auto

Highway Motor Coach

Welcome Centers

Industry Groups Government Agencies

Transportation Marketing & Public Relations

RVs

DMOs

Bus-Rail

Historical Sites

Waterways

Exposition Center

Museums Outdoor Amphitheaters

Visual Arts / Architecture

Culture & Heritage

Galleries

Retail

Fairgrounds

Meeting Facilities & Venues

Shopping Districts

Performing Arts Centers

Small Towns

Shopping Centers Outlets

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Convention/ Conference Center

Outdoor Markets

Performing Arts

Hotels Arena

Educational Institutions

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Where Do You Want to Be? - The Vision for Virginia Tourism The following vision for Virginia's tourism industry is based upon input from tourism stakeholders regarding the direction for Commonwealth in the next five years.

The Vision for Virginia Tourism Looking ahead over the next five years, Virginia’s tourism industry will enhance its prominence as a world-class destination, delivering distinctive visitor experiences. Virginia and its diversity will offer superior environments for individual visitors, couples, families, groups, and residents to enjoy nature and outdoor recreation ranging from relaxing getaways to adventure travel across the Commonwealth's coastal shores, beaches, and lowlands to the mountain and valleys along its western borders. Historical experiences, prevalent across the state that highlight the nation's colonial, Civil War, presidential, frontier, Native American, African American, civil rights, maritime, and military history among others will serve as enriching tourism draws. Authentic experiences showcasing Virginia's various music genres, performing, visual and craft arts, community character, culinary richness, wine, and agriculture will be recognized as stand-out elements of the Commonwealth. Virginia and its destinations will generate incremental economic development through tourism by leveraging rich natural beauty, recreational opportunities, historic and cultural assets, unique attractions, and other existing and new visitor experiences. The successful growth and development of the Virginia tourism industry will be realized while its individual communities are able to maintain their distinctive and valuable socio-cultural attributes, character, and sense of place. Public- and private-sector investment in the various assets within the Commonwealth DRAFT

Virginia's Vision Highlights  Prominence as a world-class destination enhanced, delivering distinctive visitor experiences  Generation of incremental economic development by leveraging rich natural beauty, recreational opportunities, historic and cultural assets, unique attractions, and other existing and new visitor experiences  Growth and development of tourism realized while communities maintain their unique and valuable socio-cultural attributes, character, and sense of place  Investment in assets to enhance, preserve, and support tourism in a sustainable and environmentally-sensitive manner for visitors and residents  Emphasis on the visitor experience and focus on creating, promoting, and connecting diverse and authentic experiences in both urban and rural areas that attract increased numbers of visitors and spending across all demographics  All Virginians view tourism as critical to the vitality of the Commonwealth and as an economic engine, while contributing significantly to residents' improved quality of life and providing positive socio-economic impacts

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will be made to enhance, preserve, and support tourism in a sustainable and environmentally-sensitive manner for visitors and residents. Infrastructure will be maintained and improved to enable tourism growth. Tourism stakeholders will focus on creating, promoting, and connecting diverse and authentic experiences in both urban and rural areas of the Commonwealth that attract increased numbers of visitors and spending across all demographics. Emphasis on the visitor experience will be a central component that contributes to this growth and ensures high levels of return visitation. Virginia will be dynamic and flexible in serving visitors, anticipating their preferences, and efficiently adapting to changes that enable long-term competitiveness. The tourism industry will be recognized by the Commonwealth’s government leaders, private sector, and residents for its significant role as a leading catalyst for and driver of economic development and job creation across all regions of the state. All Virginians will view tourism as critical to the vitality of the Commonwealth and as an economic engine, while contributing significantly to residents' improved quality of life and providing positive socio-economic impacts. The tourism industry will be supported through funding, education, programs, and policies vital to its continued growth. Stakeholders throughout Virginia will work collaboratively to grow tourism in a strategic manner, ensuring partnerships and cooperative efforts that continue to strengthen the Commonwealth's image and success as a tourist destination.

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How Do You Get There? The blueprint for tourism defines how Virginia should achieve this comprehensive vision.

Blueprint Structure Outcomes

This blueprint for tourism in Virginia is structured in a way which outlines (1) desired outcomes for the tourism industry in the next five years, (2) objectives for achieving those outcomes, and (3) strategies to achieve those objectives. The desired outcomes for Virginia's tourism industry are applicable to all tourism regions of the Commonwealth. Each strategy includes a brief description, list of actions, potential key critical factors for success of the strategy as well as the following elements:

Objectives Strategies

 Priority/timing: High (immediate) or medium (over the next five years). Those categorized as "high'" can generally be characterized as existing or growing product areas that within the next five years should be further developed or enhanced in an effort to serve as (or support) primary draws. Those categorized as "medium" are areas that in the next five years may realistically need a longer time horizon to develop into a primary draw, those that may be more niche areas, or those that are generally complimentary/auxiliary product experiences to the primary draws in the next five years.  Roles: Key stakeholders who should be involved in implementing each strategy are identified. It is anticipated that destinations implementing this plan will identify a key leadership role and a group of supporting stakeholders, which will contribute to specific strategy elements. Stakeholders include organizations at the local, state, and national levels of the public and private sectors. Certain organization names have been coded, including the following: VTC - Virginia Tourism Corporation, DMO - Destination Marketing Organization, PDC - Planning District Commission, VEDP - Virginia Economic Development Partnership, VHTA - Virginia Hospitality & Travel Association, VDOT - Virginia Department of Transportation, DHCD - Virginia Department of Housing and Community Development, DCR Virginia Department of Conservation and Recreation, DGIF - Virginia Department of Gaming and Inland Fisheries, DEQ - Virginia Department of Environmental Quality, NPS - National Park Service.  Potential Measures of Success: Potential measures to gauge success during the implementation phase where leading organizations will establish metrics. It is anticipated that destinations implementing this plan will establish unique metrics for their respective destinations.

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 Example destinations: Examples of destinations that implemented similar strategies. For the set of product strategies, each contains an example of a destination in Virginia and elsewhere on a national basis. National examples are also provided for the remaining strategies, associated with supporting elements, partnerships, policies, and promotions, where applicable.

How Do You Get There? - Five Competive Factors Virginia's tourism strategy for the next five years centers around five competitive factors for economic development focused on products, pillars (infrastructure), partnerships, promotions, and policies. Products include visitor lures, draws, and attractions. Pillars or infrastructure involve transportation infrastructure, wayfinding, workforce training, and research, which serve to support tourism growth and industry success. Partnerships are characterized by the cooperation, coordination, and collaboration among tourism stakeholders to support tourism development and promotion. Promotions in the context of this plan relate to the strategic elements for tourism promotion, rather than specific advertising tactics. Policies include programs, legislation, and funding which support tourism.

Products

Promotions

Policies

Partnerships

Pillars

The Desired Outcomes from the PWC Plan focus on five factors to improve Virginia’s competitive status: Product Development Attractions stay relevant to the changes of activities and desires of today’s travelers. Product development must be able to exceed expectations of today’s domestic and international high-value visitors. Pillars (Infrastructure) Virginia’s transportation infrastructure supports a quality visitor journey in all aspects of the travel throughout the Commonwealth. Partnerships Cooperation among various stakeholders is conducted on a regional basis to develop multi-level itineraries that will position Virginia as an attractive alternative for leisure and business trips. Promotions Internal communications will convert high-yield ambassadors for the importance of tourism in building diverse economies for Virginia’s regions. External communications should focus on building brand relevancy to targeted out-of-state markets that produce the highest return on investment. Policies State and local governments will put into place policies that will build investment into communities through tourism development while also improving the quality of life for its residents.

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How Do You Get There? - Objectives Each outcome includes a series of objectives which are being finalized. Examples include the following: Outcome 1: Products

Objective 5: Sports - Facilities for participant and spectator sporting events are enhanced and developed

Objective 1: Town/City Centers - Visitor experiences in city/town centers are improved to create for attractive destinations

Objective 6: Culinary - Culinary visitor experiences (wineries, agritourism, dining, etc.) are established and expanded

Objective 2: Nature & Outdoor Recreation - Visitor experiences are further developed which highlight Virginia's natural beauty and natural assets

Objective 7: Arts & Music - Visitor experiences related to music and arts (performance, visual, craft, etc.) are created and enriched

Objective 3: History & Heritage - History and heritage experiences are preserved, refreshed, and expanded Objective 4: Meetings - Facilities to attract meetings (conventions, conferences, corporate meetings, trade shows, exhibitions, trainings/seminars, etc.) are built and improved to maximize economic impact and community value

Objective 8: Industry - Other visitor experiences, which leverage Virginia's economic strengths and industries are enhanced and created Objective 9: Commercial Attractions - Commercial attractions are increased Objective 10: Events - Events which leverage Virginia's tourism assets are created and expanded

Outcome 2: Pillars (Infrastructure) Objective 1: Strategies to improve transportation are developed and executed

Objective 3: Tourism education and training programs are continued and enhanced

Objective 2: Visitor wayfinding is improved

Objective 4: Tourism research is available which supports tourism development and marketing initiatives

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Outcome 3: Partnerships Objective 1: Organizations to lead tourism initiatives are strengthened or formed

Objective 3: Collaboration and coordination among tourism attractions and businesses are enhanced

Objective 2: Collaboration and coordination among intragovernment entities are enhanced

Objective 4: Collaboration between the public and private sectors is improved

Outcome 4: Promotions Objective 1: Efforts to promote and educate government leaders, the business community, and residents on tourism benefits are continued Objective 2: Tourism promotion efforts for economic development are enhanced

Objective 4: Visitors markets with high-impact continue to be targeted, while new markets are explored Objective 5: Destination branding is used to enhance community character and sense of place

Objective 3: Connectivity among destinations, attractions, and visitor themes is improved

Outcome 5: Policies Objective 1: Tourism policy for State Government is created to assist and support the tourism industry

Objective 3: Tourism development and marketing policies and programs are created, enhanced, and utilized

Objective 2: Funding is available for tourism growth

Objective 4: Policies and programs designed to preserve historical, cultural, and natural assets are maintained

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How Do You Get There? - Example Strategies Example strategies are presented in the following pages to provide an indication of the information and detail associated with each strategy. Example A: Products - Nature & Outdoor Recreation Strategy: Leverage Virginia's waterfront areas Virginia has vast miles of waterfront along its rivers, lakes, beaches, and coastlines where visitor opportunities for recreation and enjoyment in both natural and developed settings can be maximized. Virginia utilizes much of its waterfront areas in strategic locations for visitors and residents to enjoy nature and outdoor recreation from Tides Inn resort in Irvington to Buggs Island Lake in Southern Virginia to the James River Park System in Richmond. However, access to the waterfront areas has been recognized as a challenge in certain areas, such as the Chesapeake Bay region or limited beach access in the Eastern Shore. Sustainability and balance of these natural attractions with development will be critical elements for tourism growth.

Priority/Timing: High Key Stakeholder Roles: Local Govt - Dept depends on use (Parks & Rec, Planning, Economic Development, etc.), DMOs, VTC, Hospitality Associations, PDCs, DCR, DGIF, VA Marine Resources Commission, VEDP, VDOT, VA Dept of Business Assistance, NPS, National Refuge Service Potential Measures of Success:  Number of plans for waterfront developments, including access points, commercial developments, trails, etc.  Number of developments completed

Actions:

Example Destinations:

 Enhance and expand elements which enable and support water accessibility and recreation activities such as fishing, boating, rafting, paddling, hiking, and biking activities along the shorelines, and others. Experiences are encouraged to be positioned as both environmentally and family-friendly. Accessibility features include boat ramps/slips, marinas, rentals/charters, guides/ tours, and parking. Outfitter businesses near water access points should also be encouraged and expanded in strategic locations to support waterfront activities. Infrastructure, including roads and signage directing visitors to water access points, should also be enhanced.  Create and enhance waterfront attractions for visitors and residents that are minimally invasive for the environment. Accommodations, dining/concessions, retail, and events and entertainment, such as waterfront music, arts, and wine opportunities should be developed in strategic locations in proximity to coastline areas. New development or redevelopment should leverage current aesthetic and character of the destination. For

 Virginia: Norfolk  National: Governors Island, New York o 172 acre island located approximated half a mile from the southern tip of Manhattan and is only accessible via a free ferry o The island hosts cultural events, food festivals, concerts, performances, and offers activities such as a bicycle path, an artistic mini golf course, and plenty of fields for activities o Today, the island attracts thousands of visitors each day and has become known as New York City's "Playground for the Arts"

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accommodations, coastlines present a key opportunity for resort development with on-site access to natural resources and recreation opportunities. Distinctive resort options should be explored, including luxury spa resorts, vacation rentals, cabins or cottages, outdoor retreats, floating accommodations, and other options. Maintain and develop parks, trails (water and land), piers, and boardwalk areas along coastal destinations equipped with points of interest, activity points, and educational information (nature, history, etc.). Themed trails which further enhance the visitor experience and destination prominence should also be promoted and developed. Explore developing or expanding designated areas and preserves for fishing and hunting (both public and private), creating concentrated attraction areas and lending potential for further amenity development. The licensing process for out-of-state visitors should continue to be convenient and efficient with licenses available from commercial locations and online. Further develop and promote rivers with rapids as whitewater rafting and kayaking locations. Outfitters, guides, river access points, parking, and other infrastructure (concessions, first aid, restrooms, etc.) should be developed in strategic locations to enhance the rafting or kayaking experience. Outfitters and/or guides should offer transportation services (for a fee) for individuals or groups rafting or kayaking without a guide. Other visitor activities and supporting elements should also be available around access points. Continue preservation, maintenance, and cleanliness of natural resources to ensure ongoing use and appeal

Potential Success Factors:  Approach waterfront development opportunities in a holistic manner for development that leverages the natural area, complements other destination attractions, and is respectful of the environment  Cooperation among government entities, private businesses, and environmental organizations  Maintain and develop policies which protect and preserve natural areas, yet allow for recreational use in sustainable manner  Investment may be lead by the private or public sector, yet exploration of incentives for private sector investment in waterfront developments and businesses which serve visitors near the waterfront  Leveraging potential resources for development assistance include the Land and Water Conservation Fund and the Community Development Block Grants.

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Example B: Products - Culinary Strategy: Develop and expand trails to enhance culinary experiences Winery trails from "D.C.'s Wine Country" in Northern Virginia to the Mountain Road Wine Experience in Southwest Virginia are spread across the state. Trails for wineries, breweries, distilleries, farms, and restaurants or dining destinations should continue to be developed.

Priority/Timing: Medium Key Stakeholder Roles: DMOs, Attraction Management, VTC, Chambers of Commerce, VDOT, Local Govt

Actions: Potential Measures of Success:        

Continue to develop and expand wine trails as new wineries open Develop and expand brewery and distillery trails as more facilities open Use trails to connect to farms, markets, and destinations Develop foodie trails or itineraries which help showcase Tastes of Virginia within destinations and among various locations Incorporate various types of restaurants in culinary trails from fine dining to diners with a variety of food diversity Include a mix of urban and rural trails Connect trail locations through various means, including outdoor trails (biking, horses, etc.) Incorporate events along culinary trails, from culinary crawls to outdoor events

Potential Success Factors:  Promotion of culinary trails  Strategically branded trails to distinguish visitor experiences for trails that connect various destinations, other visitor themes, and specific culinary experiences. Other visitor themes may include history, arts, music, and the outdoors, such as trails connected by biking paths  Collaborative efforts among public and private stakeholders as trail development (depending on scale) may require significant planning efforts  Collaboration on promotions required by attraction management and DMOs  Signage for trails along with maps and visitor information that are visible and easily accessible through electronic channels and mobile devices  Exploration of incentives to encourage private sector investment in visitor amenities to support trail visitors should be explored

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 Number of trails planned, developed or expanded Example Destinations:  Virginia: D.C.’s Wine Country  National: Louisiana Culinary Trail o Developed to rebuild tourism following Hurricane Katrina o Emphasizes Louisiana's Cajun and Creole culinary heritage and position as a top-ranked destination for food o Total of seven distinct trails based on geography and culinary offerings, including 'Red River Riches', 'Delta Delights', 'Prairie Home Cooking', 'Capital Cuisine', 'Seafood Sensation', 'Bayou Bounty' in Acadiana, and 'Creole Fusion' o Stops along trails include a mix of mom-and-pop cafes, upscale restaurants, hole-in-the-wall hideaways, farmers' markets, sandwich shops, seafood joints, roadside stands, local grocery stores, bakeries, and food festivals. o Marketed through a guidebook and website

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